Greenpark management estimates of unaudited revenue and EBITDA related to the CMM and power response business being acquired of c. £3.4 million and c. £1.9 million, respectively, for the year ended 31 December 2011.

Acquisition conditional on satisfaction of certain conditions precedent expected to occur during March 2012, with a longstop date of 30 April 2012

The Acquisition has been financed by conditional funding arrangements to:

extend and add additional banking facilities, increasing total facilities to £9.5 million, to be provided by Lloyds TSB Bank (currently drawn prior to the Acquisition at approx. £5.0 million);

the issue of a £2.0 million convertible loan; and

the issue of £250,000 in Alkane ordinary shares.

Trading Update

The Company will publish its results for the year ended 31 December 2011 on 7 March 2012 and today provides an update on trading.

Outline numbers for the Company for 2011 are:

revenue of c.£9.5 million (2010: £6.6m);

full year electricity output of circa 140GWh (2010: 120GWh); and

average electricity sales price for 2011 is expected to be approximately £51/MWh (2010: £44/MWh).

60% of 2012 output, excluding capacity from the Acquisition, now contracted at an average price of £56/MWh

Current price weakness in power market

Neil O'Brien, Chief Executive Officer, commented on the acquisition:

'This acquisition is a significant step change in the scale of Alkane and adds significantly to our operating capacity and project pipeline. In addition, the acquisition will allow us to triple our capacity in power response for the National Grid.'

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